NZDUSD – HAS ABOUT 250 BASIS POINTS OF POTENTIAL. LETS DO SOME MATH.

by | Jan 13, 2022 | CHART, PROCESS | 0 comments

01.13.2022

CHART:

THIS PAIR HAS 250 BASIS POINTS OF POTENTIAL, AT THIS LEVEL YOU ARE RISKING 280 BASIS POINTS, SO RISK REWARD TO INITIATE A POSITION IS NOT THE BEST.

ANY LONG POSITION SHOULD HAVE STOP AT ENTRY (EXISTING POSITION)

LONG FROM THIS LEVEL (0.6870) HAS A POTENTIAL OF 0.7070.

(0.7070 – 0.6870) x 100,000 = US$ 2,000

Risk level 0.6700. (0.6700 – 0.6870) X 100,000 = ($ 1,700).

That amounts to $ 2,000 of reward per $ 100,000

The risk is similar or slightly more.